The wildfires in Southern California serve as a stark reminder of the importance of being prepared for disasters. Financial advisers recommend having a “financial go bag” ready alongside essential survival items like batteries, first aid supplies, and water. A financial go bag should include original documents such as Social Security cards, birth certificates, and passports.
Make photocopies of your driver’s license and a utility bill to prove residency if your neighborhood is blocked off when you return. Organize all your account numbers for banks, insurance companies, brokerages, and your mortgage company or landlord on one list. Include online passwords and customer service phone numbers.
Don’t rely on having access to a working computer or your mobile phone contacts. Keep copies of estate planning documents, trusts, wills, and medical directives in your go bag. List important roles and responsibilities, such as the executor of your estate and people named in your medical directives.
Include all insurance policy information, policy numbers, agents or brokers, and customer service numbers. Financial advisers have different opinions on using paper or electronic copies. Some recommend paper copies, while others suggest keeping a backup of computer files on an external hard drive.
Essentials for your financial go bag
Additional items for your financial go bag include several hundred dollars to $1,000 in cash, extra keys to vehicles and properties, and a checkbook. Store everything in waterproof bags or pouches and check them regularly for seal integrity.
Keep your financial go bag in a waterproof and fireproof safe or file cabinet that is easily accessible in an emergency. Spending a little time preparing now can save a lot of hassle in the aftermath of a disaster. In the event of a natural disaster, contact your insurance agent or mortgage servicer as soon as possible.
Renters should inform their renters insurance company and property manager, keeping a written record of communications about damage and repair plans. Homeowners should contact their homeowners insurance agent and mortgage company or servicer to learn about available disaster relief options. Mortgage forbearance may allow for reduced or paused payments for a specified period.
Be aware of scam artists and predatory lenders targeting disaster victims. Avoid high-interest loans, prepaying for repairs, and sharing personal information without verifying identities. Report any suspected scams to consumer protection agencies.
Ensuring the safety of loved ones is the top priority after a natural disaster. Resources are available to help both homeowners and renters recover financially and get back on their feet.